The new logo is part of a broader plan to increase the number of
paid subscribers for the Pandora Plus offering to 11 million by
2020, an 182% increase from its current paid subscribers. The
latest figures from Pandora indicate that it has 3.9 million paid
subscribers and 78 million monthly active listeners.
Pandora Plus is an ad-free experience allowing users to replay
music, skip as many songs as they'd like and stream even when
they're offline for a monthly fee of $4.99. Pandora Plus, which was
introduced last month, is an improved and rebranded version of
Pandora One, which debuted about eight years ago.
Although Pandora says it will also look to attract new, non-paid
users, the effort is table stakes when compared to the increase
it's seeking in paid listeners; the company wants to increase its
overall user base to 110 million by 2020, a 41% increase from
Starting next Monday, Pandora will run a highly targeted
marketing campaign to help it achieve its goals. The company's
approach will rely on using its in-house data science team plus
data management platform Krux and programmatic partner DataXu.
That combination will allow Pandora to show a sequence of ads
for its ad-supported and Pandora Plus offerings as it finds
consumers across paid channels as well as its own email messages,
mobile push notifications and in-product messaging, Ms. Cross
"We work with our data science team to build a likelihood to
subscribe model," she said. "It's a gradient boosted tree, which is
a machine learning technique, which produces predictions in the
form of decision trees. It predicts how likely a given listeners is
to convert to a subscription product and takes into account
hundreds of data points and listening patterns of product
A listener who skips a lot, for example, might be interested in
paying for Pandora Plus while someone who seldom skips and only
listens to one station might not. Meanwhile, the company wants to
lure back former users with new offerings such as the ability to
skip more songs by watching a video from an advertiser.
"Our approach is not to convert people to subscription at all
cost, it is to optimize against our whole portfolio of products and
price products including free based on each listener's preference,"
Ms. Cross said.
Pandora is eighth in terms of unique visitors for mobile apps,
making it one of only two in the top 10 that aren't owned by
Google or Facebook, according
to ComScore. For contrast, Spotify is the 21st most popular app and sees
about 33 million unique visitors each month.
The company saw revenue of $343 million during the second
quarter this year, an increase of 20% year-over-year. It reported a
GAAP net loss of $76.3 million, compared with a net loss of $16.1
million in the equivalent quarter the year prior, and an adjusted
EBITDA loss of $25.1 million, compared to a profit of $16.3
User engagement, meanwhile, reached an all-time high of 24 hours
per active user per month. Pandora is set to announce its third
quarter earnings later this month.